First Plus Asset Management sees Fed inflation focus lifting 30-year Treasury yield to 5.21% - TLT News | RalliesFirst Plus Asset Management sees Fed inflation focus lifting 30-year Treasury yield to 5.21%
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TLT• Fed holds rates as inflation risks stay in focus
- First Plus Asset Management flagged renewed inflation risk as the Fed held the funds rate at 3.50%-3.75% for a fifth meeting.
- Long-end Treasuries sold off; the 30-year yield rose 24 basis points to 5.21%, the highest since 2007.
- Core PCE eased to 3.3% in June, still well above the 2% target; three officials dissented for a 25-basis-point hike.
Growth slows in the US, Australia inflation cools
- US GDP growth slowed to 1.5% annualized in Q2; the drag came from net exports tied to front-loaded imports ahead of 24 July tariffs.
- Australia CPI cooled to 3.8% in June; First Plus expects the RBA to hold near term with a hawkish bias despite sticky non-tradables.
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